After the recent tremendous increase in bitcoin’s value, people are more interested in the cryptocurrencies subject. Bitcoin is not the only crypto out there you can invest in. In this article, we review the most important ones and the way you can invest in them.
What is cryptocurrency?
In short, cryptocurrency is information stored in a database and which therefore becomes impossible to modify unless certain specific conditions are met. It looks quite like a classic bank account where the amount of money you have there will only change when you enter the necessary data that will allow you to make a withdrawal, for example, and thus make changes to its content.
The difference between Blockchain and Bitcoin
Cryptocurrency is an encrypted currency that needs the Blockchain to be used. All virtual currencies act on the Blockchain. Think of the latter as a platform for cryptocurrencies. It just so happens that Bitcoin is the very first currency of its kind ever to be created and used.
Choose your cryptocurrency
Here is the overview of some of the most prominent cryptocurrencies you can trade.
Bitcoin is the firstborn of the cryptocurrency family and also the most powerful. Acting today as the benchmark on which other virtual currencies adjust, it is also used in all types of transactions where security is a significant concern. Its reputation as the safest currency in the world has greatly played a role in its valuation, and in just ten years, its value has reached 40 thousand dollars.
Ethereum is another significant cryptocurrency. With a very stable value, it owes its popularity because it offers more than just transactions. Indeed, it also offers the possibility of creating programs and contracts. It now groups a few currencies such as DigixDAO, Augur and Ethereum Classic.
Lite coin (LTC)
According to many, Lite coin allows faster transactions than bitcoin and has a large number of tokes and mines with another algorithm. It spawned the creation of many more of the same type, such as Dogecoin and Feather coin. Even having lost its second place, Lite coin remains reliable and strong and can move up the rankings at any time.
Investing in ICOs
ICOs are, in other words, initial cryptocurrency offers and entails the new cryptocurrency project proper for investments. Some of the cryptocurrencies projects are generally failed attempts to make a fortune in a short time for lack of concrete projects behind. However, some new virtual currencies seem to have what others lack – in other words, serious vision and project.
Buy and sell cryptocurrencies online in minutes
If you are intrigued by crypto and want to trade it in the online market, then you should choose a broker that charges favourable fees. It will allow you to have a good margin in your exchanges and will limit the risks considerably. But before you get started, you will first need to create an online trading account. The way to do it is quite similar from one broker to another. Here’s a general way how to do it:
- Go to the online trading platform
- you will click on the “Register” tab
- Fill in the required fields. You will simply fill in the boxes with personal data, such as last name, first name, e-mail, telephone
- Choose the type of account
The crypto broker will then ask you to choose the type of account you are going to use. In other words, you have the option of starting to trade directly using your own funds or using a demo account. For beginners, the latter option is the best, as it will allow you to test your skills in near real-world conditions without risking losing money.
When you buy your cryptos, you will have to store them in a digital wallet which comes in several forms. There are different types of electronic wallets. Some are in the form of special hardware similar to the USB. Some are in the form of the software or application for you to install on your smartphone. Private key numbers protect them, and also these digital wallets offer a reinforced authentication system with the sending of a code by SMS (one-time code).
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